HomeMost PopularInvestingIntercept Pharmaceuticals (ICPT) Surges on Acquisition Deal

Intercept Pharmaceuticals (ICPT) Surges on Acquisition Deal

Actionable Trade Ideas

always free

Shares of Intercept Pharmaceuticals, Inc. (ICPT) surged a staggering 79.2% following the announcement of its acquisition by Italy-based pharmaceutical company Alfasigma S.p.A. The deal, valued at $19.00 per share in cash, represents an 82% premium to Interceptโ€™s closing stock price on September 25, 2023.

The transaction is expected to be completed by the end of the year.

Intercept Pharmaceuticalsโ€™ Key Drug and Market Position

Interceptโ€™s lead drug, Ocaliva (obeticholic acid or OCA), is an FDA-approved treatment for primary biliary cholangitis (PBC). Ocaliva generated sales of $152 million in the first half of 2023.

In addition to Ocaliva, Intercept is conducting phase II trials for a combination therapy of obeticholic acid and bezafibrate to treat PBC.

Despite challenges in the nonalcoholic steatohepatitis (NASH) treatment market, Interceptโ€™s merger with Alfasigma will provide a stronger position to market Ocaliva.

Acquisition Amid Turbulent Times

Intercept faced setbacks when the FDA issued a complete response letter (CRL) for its new drug application seeking approval for OCA in treating pre-cirrhotic fibrosis due to NASH. As a result, the company discontinued all NASH-related investments and initiated workforce reductions.

Mergers and Acquisitions Trend in the Pharma/Biotech Industry

Interceptโ€™s acquisition by Alfasigma is part of a wider trend, as pharmaceutical and biotech companies seek to diversify their portfolios through mergers and acquisitions. Recently, companies like Novartis and Biogen made significant acquisitions to expand their product pipelines.

Zacks Rank and a Promising Stock

Intercept currently holds a Zacks Rank #3 (Hold). For investors seeking a more favorable option, Eton Pharmaceuticals (ETON) is positioned as a top choice, with a Zacks Rank #1 (Strong Buy).

To learn more, see the complete list of todayโ€™s Zacks #1 Rank stocks here.

Download Zacksโ€™ 7 Best Stocks for the Next 30 Days here.

Please note that the views and opinions expressed in this article are those of the author and do not necessarily reflect the official policies or positions of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.